Are there any requirements of lien holders to remove a lien if the obligation becomes unenforceable?
For example ... a foreclosure lawsuit is dismissed "with" prejudice ... and the Florida statute of limitations on the promissory notes has expired.
If the lien holder is unable to foreclose ... and is time barred from collecting on the note ... are they still entitled to maintain a lien on the property ?
Are there any requirements for a lien holder to maintain their lien ?
When title is examined, the title examiner looks at what is recorded in the public records. If it is not clear from what is recorded that a lien has expired, that lien is a "cloud on the title." To remove a lien that is a cloud on the title, you must either get a release from the lien holder or an order from a judge saying that the lien is unenforceable. If your are unsure of your right, you should consult an experienced real estate lawyer in your area.
It is not unusual for a lienholder with an unenforceable lien to "forget" to remove the lien from the property. If they don't get it removed, you can have a quiet title action done that will remove such liens from the property. To do so, contact a real property attorney in your area.
While I agree with my colleagues to a certain degree, I do not necessarily agree with your premise. While the statute of limitations may have run on the note, there is a separate statute of limitations dealing specifically with mortgages (5 years from the listed maturity date or 20 years from the filing date if a maturity date cannot be determined from the instrument). Furthermore, the Florida Supreme Court has ruled that since foreclosure is an equitable remedy, even if a lender loses at trial they can, in most circumstances, try to file a new foreclosure suit as the mortgage itself still continues to obligate the homeowner to make payments.
Judgment liens are the result of someone winning a lawsuit, and then entering the judgment against your property. They can be placed on your car or home.
A lien gives a creditor certain rights to a debtor's property in order to ensure payment of a debt. Liens can be either voluntary or involuntary.